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When will I get my Federal tax return?

Will I get the entire American Oppurtunity Credit back when I file it on my tax return?

  • I have a loan that was forgiven during the 2009 year for school. It is now considered taxable income. It was around 10k and I will owe about 1k or more in taxes for that. I've had about $2500 withheld from my checks for federal for 2009. So total my approximate tax liability for that year is about $3500. I spent at least $4,000 of my income just on tuition and fees not even getting into "qualified educational expenses" so I should qualify for the entire credit ($2,500) So, I should in theory get the $1,000 (I would otherwise had to pay in) credited back, and then get $1500 back from what I had withheld? True? (I apologize.. My credit score is perfect and I may be book smart but my mom is an angel and I has been doing all our taxes since forever, so when it comes to this stuff I get confused)

  • Answer:

    yes

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You have some complex issues that could be real costly if reported incorrectly. You should go see a tax professional. Any answer you get from the information contained in your question could only be a guess or wishful thinking.

Mathew

The maximum that is refundable for the American Opportunity credit is 40% and that is only if you are at 0 tax liability (which would be a maximum of 1,000 if you spent at least $4,000 on education costs). It sounds like you have some tax liability, therefore this credit will first lower your liability of taxes owed. What was your total income for the year? Do you claim a personal exemption, or can your parents still claim you? If your parents can claim you, then they claim the American Opportunity credit - dependents cannot claim it.

spalmer

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